Auxiliary Account

Under the terms of R.S. 17:3386(A) (Act 971 of 1985), higher education institutions which adopt a building and facility preventative maintenance program approved by the Board of Regents may retain any State General Fund monies which remain unexpended and unobligated at the end of the fiscal year, provided that not less than fifty percent of the retained funds be used solely for preventative maintenance. The remaining funds may be spent on nonrecurring projects and are subject to approval by the higher education management boards, the Board of Regents, and the Joint Legislative Committee on the Budget. Historically, institutions have been allowed to retain no more than $200,000 in General Fund monies for the preventative maintenance and nonrecurring projects. Act 1478 of 1997 further limits the monies and amounts which may be retained. Act 1478 provides that: (1) unexpended, unobligated General Fund appropriations which were made for a specific purpose in the General Appropriations Act shall not be retained; and (2) the retained monies that public higher education institutions may carry forward are limited to no more than two percent (2.0%) of their prior year's State General Fund appropriation or allocation. Since the retained funds are deposited in a reserve fund before they are utilized, the funds are treated as Self-generated Revenues for budgetary purposes

SOURCE OF FUNDING

The source of funding for this account is Fees and Self-generated Revenues. Under the terms of R.S. 17:3386(A) (Act 971 of 1985), higher education institutions which adopt a building and facility preventative maintenance account approved by the Board of Regents may retain any State General Fund monies which remain unexpended and unobligated at the end of the fiscal year, provided that not less than fifty percent of the retained funds be used solely for preventative maintenance. The remaining funds may be spent on nonrecurring projects and are subject to approval by the higher education management boards, the Board of Regents, and the Joint Legislative Committee on the Budget. Act 1478 of 1997 further limits the monies and amounts which may be retained. Act 1478 provides that: (1) unexpended, unobligated general fund appropriations which were made for a specific purpose in the General Appropriations Act shall not be retained; and (2) the retained monies that public higher education institutions may carry forward are limited to no more than two percent (2.0%) of their prior year's State General Fund appropriation or allocation. Since the retained funds are deposited in a reserve fund before they are utilized, the funds are treated as Self-generated Revenues for budgetary purposes.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

$0

$70,989

0

ACT 19 FISCAL YEAR 1998-1999

BA-7 TRANSACTIONS:

$0

$0

0

None

$0

$70,989

0

EXISTING OPERATING BUDGET - November 20, 1998

$0

$1,722

0

Adjust surplus funds per Act 1478 of 1997

$0

$72,711

0

TOTAL RECOMMENDED

$0

$1,722

0

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this account is recommended at 102.4% of the existing operating budget. It represents 102.4% of the total request ($70,989) for this account. The reason for the increase from the existing operating budget is the adjustment made to place this account in compliance with Act 1478 of 1997. The total recommended funding for this account is derived from this agency's prior year State General Fund appropriation or allocation ($3,549,429), which is then multiplied by 2.0% to yield the total recommended funding ($70,989).

PROFESSIONAL SERVICES

This account does not have funding for Professional Services for Fiscal Year 1999-2000.

OTHER CHARGES

This account does not have a specific allocation for Other Charges for Fiscal Year 1999-2000.

ACQUISITIONS AND MAJOR REPAIRS

This account does not have funding for Acquisitions and Major Repairs for Fiscal Year 1999-2000.